Industry Minister Melanie Joly emphasized the importance of long-term commitments to Canada in the potential merger between Teck Resources Ltd. from Vancouver and Anglo American PLC from the UK. Joly expressed the need for a clear net benefit to Canada, focusing on job creation and maintaining a strong headquarters for the future. She revealed plans for further discussions with the CEOs of both companies to ensure the merger aligns with Canada’s interests.
The proposed merger aims to create a $70-billion copper mining giant, Anglo Teck, headquartered in Vancouver. While the companies promote it as a merger of equals, concerns have been raised about the significant valuation gap between Teck and Anglo American.
Under the Investment Canada Act, the deal is subject to review, allowing the government to assess its impact on national interests. Changes to the act earlier this year emphasize Canada’s economic security, enabling the government to seek commitments from companies to secure approval. Experts suggest that legally binding undertakings, such as maintaining Anglo Teck’s headquarters in Vancouver for a specified period, could be part of the approval process.
With Teck and Anglo American committing billions in spending in Canada, including mine expansions and critical minerals exploration, the merger is positioned as a boost to Canada’s mining sector. The companies aim to create a Canadian-based global critical minerals leader, promising economic, social, and strategic benefits for the country.